Questions:
1. What does it mean to state that a cost is a sunk cost?
2. What does it mean to state that a cost is a relevant cost?
3. What does it mean when a firm has an offer to sell its product or service at a special price and is operating with idle capacity?
4. What does it mean when a cost is avoidable in the make or buy decision?
5. What does it mean when fixed expenses allocated to a segment are considered to be common corporate expenses?
6. What does it mean to have a capital budget?